Am i a tax resident of another country?
Am i a tax resident of another country?
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Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Ok, asking on behalf of my son.

Hes living in Australia, has been for around a year. Has a bank account there, is in paid employment.

He has a dormant bank account back here in the UK, but no income or savings in the UK.

His AUSTRALIAN bank have rang and asked him twice "Are you a tax resident of another country?"

Hes told them he doesnt know what they mean but the people asking the question - presumably in some call centre or other - cant elaborate?

I assume hes not - in so much as he doesnt have accounts / earnings etc here or in Monaco or wherever for tax purposes - but can someone confirm the answer should be "No"?

Thanks in advance

Edited by Deep Thought on Wednesday 25th July 13:23

anonymous-user

84 months

Wednesday 25th July 2018
quotequote all
He is a tax resident of Aus if he is living there and paying tax.

If I remember I was classed as a non-UK tax payer after 185 days out of the country, I.e. I spent over that time and paid my main income tax in Germany.

ETA; although I still paid UK tax on rental income, I was not a resident in the UK for tax purposes.

Eric Mc

125,680 posts

295 months

Wednesday 25th July 2018
quotequote all
Was he out of the UK for one or more complete UK tax years?

The tax year runs from 6 April to the following 5 April i.e. tax year 2017/18 ran from 6 April 2017 to 5 April 2018.

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Lord.Vader said:
He is a tax resident of Aus if he is living there and paying tax.

If I remember I was classed as a non-UK tax payer after 185 days out of the country, I.e. I spent over that time and paid my main income tax in Germany.

ETA; although I still paid UK tax on rental income, I was not a resident in the UK for tax purposes.
Sorry, i wholly should have clarified - its his Australian bank that are asking, not his UK one.

I missed that important detail...

I've added the word AUSTRALIAN in to the original post for clarity.

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Eric Mc said:
Was he out of the UK for one or more complete UK tax years?

The tax year runs from 6 April to the following 5 April i.e. tax year 2017/18 ran from 6 April 2017 to 5 April 2018.
He had earnings in the UK in the tax year 2017/2018 (from Apr 17 to Aug 17)

And for clarity, this is his AUSTRALIAN bank asking is he a tax resident of any other country.

Simpo Two

92,807 posts

295 months

Wednesday 25th July 2018
quotequote all
I can only think the bank needs to know whether to pay interest gross or net of tax. In the absence of any info otherwise my instinct would be to choose whichever answer leads to 'gross' and sort it out afterwards!

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Simpo Two said:
I can only think the bank needs to know whether to pay interest gross or net of tax. In the absence of any info otherwise my instinct would be to choose whichever answer leads to 'gross' and sort it out afterwards!
Agreed. smile

And that would be "No" to their question then?

arguti

1,867 posts

216 months

Wednesday 25th July 2018
quotequote all
The Australian bank are asking as recently had the same questions from New Zealand - basically under the tax treaties/agreements with EU, account holders are required to provide tax reference numbers and other countries of tax residence so that they can share information to ensure no person is dodging tax from one jurisdiction to another if that makes sense.

I had to complete these forms beginning of 2018 and the forms are quite explicit as to why they want the information.

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
arguti said:
The Australian bank are asking as recently had the same questions from New Zealand - basically under the tax treaties/agreements with EU, account holders are required to provide tax reference numbers and other countries of tax residence so that they can share information to ensure no person is dodging tax from one jurisdiction to another if that makes sense.

I had to complete these forms beginning of 2018 and the forms are quite explicit as to why they want the information.
Seems reasonable.

So the answer in my sons case is "No"?

Eric Mc

125,680 posts

295 months

Wednesday 25th July 2018
quotequote all
Deep Thought said:
Eric Mc said:
Was he out of the UK for one or more complete UK tax years?

The tax year runs from 6 April to the following 5 April i.e. tax year 2017/18 ran from 6 April 2017 to 5 April 2018.
He had earnings in the UK in the tax year 2017/2018 (from Apr 17 to Aug 17)

And for clarity, this is his AUSTRALIAN bank asking is he a tax resident of any other country.
And the answer to the question I asked?

Simpo Two

92,807 posts

295 months

Wednesday 25th July 2018
quotequote all
Deep Thought said:
Simpo Two said:
I can only think the bank needs to know whether to pay interest gross or net of tax. In the absence of any info otherwise my instinct would be to choose whichever answer leads to 'gross' and sort it out afterwards!
Agreed. smile

And that would be "No" to their question then?
Running solely on logic...

If you choose NO to 'Are you a tax resident of another country?' I imagine they would view you as an Aussie taxpayer and deduct any taxes due under Australian law.

But are we talking about interest on savings (ie buttons), or Aussie PAYE on earnings (ie lots)? Is he paying tax on his Oz earnings or just stuffing them into his bank gross?

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Eric Mc said:
Deep Thought said:
Eric Mc said:
Was he out of the UK for one or more complete UK tax years?

The tax year runs from 6 April to the following 5 April i.e. tax year 2017/18 ran from 6 April 2017 to 5 April 2018.
He had earnings in the UK in the tax year 2017/2018 (from Apr 17 to Aug 17)

And for clarity, this is his AUSTRALIAN bank asking is he a tax resident of any other country.
And the answer to the question I asked?
Apologies - no, he hasnt been out of the UK for one or more complete tax years.

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Simpo Two said:
Deep Thought said:
Simpo Two said:
I can only think the bank needs to know whether to pay interest gross or net of tax. In the absence of any info otherwise my instinct would be to choose whichever answer leads to 'gross' and sort it out afterwards!
Agreed. smile

And that would be "No" to their question then?
Running solely on logic...

If you choose NO to 'Are you a tax resident of another country?' I imagine they would view you as an Aussie taxpayer and deduct any taxes due under Australian law.

But are we talking about interest on savings (ie buttons), or Aussie PAYE on earnings (ie lots)? Is he paying tax on his Oz earnings or just stuffing them into his bank gross?
Yes, he has a job there and is paying tax out of that at source and gets paid in to that account, so yes i guess they would thus deduct any taxes on interest etc due.

He has no savings per se out there or back home - just whatever is in his current account.


Eric Mc

125,680 posts

295 months

Wednesday 25th July 2018
quotequote all
Deep Thought said:
Apologies - no, he hasnt been out of the UK for one or more complete tax years.
Thanks.

That means he could still be a UK tax resident.

The rules for Australian tax residency will probably be different so he might need to ask the question on a forum where there are people familiar with the Aussie tax rules on tax residency status.

Deep Thought

Original Poster:

40,169 posts

227 months

Wednesday 25th July 2018
quotequote all
Eric Mc said:
Deep Thought said:
Apologies - no, he hasnt been out of the UK for one or more complete tax years.
Thanks.

That means he could still be a UK tax resident.

The rules for Australian tax residency will probably be different so he might need to ask the question on a forum where there are people familiar with the Aussie tax rules on tax residency status.
Thanks. He wasnt sure and i said i'd ask on here. I'll have him check on local forums there.